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Euro-Zone May Be in Recession
Due to Drop in Manufacturing

By

Christopher RhoadsStaff Reporter of The Wall Street Journal

Updated Nov. 5, 2001 12:01 a.m. ET

BERLIN -- A growing number of economists believes Europe is in the early stages of a mild recession.

Sharp falls in manufacturing activity, business confidence and employment on both sides of the Atlantic since the Sept. 11 attacks have convinced some economists in the last few days that the euro-area economy is shrinking slightly this quarter and will continue to do so in the next, meeting the conventional definition of a technical recession.